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KBRA Withdraws One Rating and Affirms All Other Ratings for CFCRE 2016-C4

27 Mar 2026   |   New York

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KBRA withdraws one rating and affirms all other outstanding ratings for CFCRE 2016-C4. The conduit transaction has been reduced to 15 loans and a balance of $269.1 million from 49 loans and $840.0 million at securitization. The rating actions are based on current C/E levels, which are significantly higher than securitization; our identification of nine loans (72.5% of the pool balance) as KBRA Loans of Concern (K-LOCs); our estimated probability of default-adjusted losses of $10.2 million (which if realized would only impact the non-rated certificates) and corresponding principal recoveries; and current interest shortfalls affecting the non-rated certificates.

KBRA withdraws its AAA (sf) rating of Class A-4 following the reduction of the principal balance of the rated security to zero as reflected in the transaction’s March 2026 remittance report.

As of the current review, five (47.7%) of the nine K-LOCs are specially serviced, including two loans (7.3%) that recently transferred in March 2026 and are not yet reflected in monthly reporting. Of the K-LOCs, five (18.7%) have estimated losses. The K-LOCs are depicted in the table below.

K-LOCs Loss Given Default (000s) Loss Severity 3 215 West 34th Street & 218 West 35th Street MU 45,000 16.7% Y NPM Y Specially Serviced 10/29/2025 - - 1 OZRE Leased Fee Portfolio OF 43,862 16.3% Y NPM N Specially Serviced 01/05/2026 - - 2 Hyatt Regency St. Louis at The Arch LO 42,105 15.6% N C Y Modification 10/30/2024 - - 17 5353 West Bell Road OF 19,700 7.3% Y NPM N Specially Serviced 05/10/2024 $7,547 38.3% 22 Travelers Office Tower II OF 16,000 5.9% Y NPM N Specially Serviced 07/10/2024 $1,171 7.3% 20 3 Executive Campus OF 13,795 5.1% N C N Maturity 09/05/2019 - - 32 Yuma Mesa Shopping Center RT 6,328 2.4% N NPM N NPM 01/06/2025 $301 4.8% 39 Banderas Corporate Center OF 4,682 1.7% N C N Maturity 03/18/2021 $682 14.6% 44 Hurley Way OF 3,718 1.4% Y NPM N Specially Serviced 10/01/2019 $642 17.3% Total K-LOCs $195,190 72.5% $10,344 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 Prosp. ID Loan Name Prop Type Current In-Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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